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BMW Group remains firmly on track in 2013

Thu Mar 13 10:45:00 CET 2014 Press Release

New highs for sales volume and Group earnings figures +++ All targets set for year achieved +++ Group revenues of € 76.06 billion in 2013 +++ Profit before taxes increased to € 7.91 billion +++ Group net profit for year up to € 5.34 billion +++
Proposal to raise dividend to € 2.60 per share of common stock +++

Munich. With its fourth straight record year, the BMW
Group’s strong performance continued during the past year despite a
challenging economic environment worldwide. The company successfully
maintained its position as the world's leading premium manufacturer.

"In 2013 we achieved new highs for sales volume and profit and
have thereby reached the targets we set ourselves for the full year”,
stated Norbert Reithofer, Chairman of the Board of Management of BMW
AG, on Thursday in Munich.

Group revenues for 2013 totalled € 76,058 million
(2012: € 76,848 million; -1.0%) and were thus marginally down on
the previous year, with the difference due to exchange rate
developments. Group profit before tax (EBT) increased
by 1.4% to a new high of € 7,913 million (2012: € 7,803 million)
despite increased investment in new technologies, greater competition
and higher personnel costs. Group net profit rose by
4.5% to the new record value of € 5,340 million (2012: € 5,111 million).

The BMW Group increased deliveries to customers by
6.4% to 1,963,798 units (2012: 1,845,186 units), with all three brands
registering all-time highs.

Record dividend of € 2.60 per share of common stock proposed

BMW AG is committed to sharing its success with its shareholders. The
Board of Management and the Supervisory Board will propose to
shareholders at the Annual General Meeting on 15 May 2014 that the
dividend be increased to a new highest level of € 2.60 (2012: € 2.50)
per share of common stock and € 2.62 (2012: € 2.52) per share of
preferred stock. Based on these figures, the total distribution will
rise to € 1,707 million (2012: € 1,640 million). The dividend rate is
unchanged at 32.0% and is within the BMW Group's target corridor of
30 to 40%.

Automotive segment: EBIT margin at 9.4% in 2013

Automotive segment revenues rose by 0.6% to € 70,629
million (2012: € 70,208). Influenced by the above-mentioned factors –
high expenditure for new technologies, increasing the product range
and market launch costs as well as increased competition –
EBIT decreased to € 6,657 million
(2012: € 7,599 million; -12.4%). The EBIT margin came
in at 9.4% and was thus in the upper half of the targeted corridor of
between 8 and 10%. Segment profit before tax amounted
to € 6,561 million (2012: € 7,170 million; -8.5%).

The BMW brand retained pole position in the premium
segment in 2013, with worldwide sales volume up by 7.5% to 1,655,138
units (2012: 1,540,085 units). The BMW X1 as well as the BMW 3, 5, and
6 Series all asserted their positions as market leaders in their own segments.

Solid growth was recorded again for the BMW X1, with sales volume up
by 9.2% to 161,353 units (2012: 147,776 units). The BMW X3 performed
well again and recorded a 5.0% increase to 157,303 units (2012:
149,853 units). Sales of the BMW X5 were only slightly down on the
previous year at 107,231 units (2012: 108,544 units; -1.2%) despite
the model change (the new BMW X5 has been available since mid-November).

The BMW 3 Series remained a major source of growth in 2013, with
sales rising by 23.0% to 500,332 units (2012: 406,752 units). The
success story of the BMW 5 Series continued over the twelve-month
period, during which 366,992 units (2012: 359,016 units; +2.2%) were
sold. The BMW 6 Series was also able to make significant progress,
with sales up by 19.4% to 27,687 units (2012: 23,193 units).

MINI similarly set a new sales volume record in 2013,
with worldwide sales edging up by 1.2% to 305,030 units (2012: 301,526
units). The new generation of the MINI will make its appearance in the
showrooms from spring 2014 onwards. The MINI Hatch, at the end of its
model life-cycle, still managed to achieve a sales volume of 128,498
units in the past year (2012: 131,569 units; -2.3%). Sales of
the MINI Countryman were roughly at the previous year's level, with a
total of 101,897 units sold (2012: 102,271 units; -0.4%).

Rolls-Royce Motor Cars remained market leader in the
ultra-luxury segment in 2013 and, with sales of 3,630 units (2012:
3,575 units; +1.5%), achieved a new sales volume record for the fourth
year in succession.

The BMW Group recorded sales volume growth on nearly
all continents in the past year. “The BMW Group's
sales strategy is geared towards achieving an evenly balanced
distribution of worldwide sales across the three main regions of the
world to avoid overdependence on any single market”, commented Reithofer.

At 859,546 units, sales in Europe – the BMW Group's
largest sales region – were almost at their previous year's level,
despite challenging business conditions in some countries (-0.7%).

For the first time, the number of vehicles sold by the BMW Group in
Asia exceeded the half-million mark. Sales in the
region grew by 17.3% to 578,678 units, helped by a 19.7% rise on the
Chinese mainland to 391,713 units.

The BMW Group continued to perform well in the
Americas region, with deliveries to customers up by
9.0% to 463,822 units, including 376,636 units sold in the USA (+8.1%).

Motorcycles segment also sets new sales volume record

Sales volume, revenues and earnings of the Motorcycles segment rose
in 2013. Revenues edged up by 0.9% to € 1,504 million
(2012: € 1,490 million). EBIT rose to € 79 million
(2012: € 9 million) and profit before tax to
€ 76 million (2012: € 6 million). Segment earnings in 2012 were
impacted by expenses incurred in realigning the Motorcycles business.
Despite challenging market conditions, a new sales volume record was
set for 2013, with the number of BMWmotorcycles delivered to customers reaching a new of
level of 115,215 units (2012: 106,358 units; +8.3%).

Good progress made by Financial Services segment

The Financial Services segment continued to perform well during the
past year. Revenues increased by 1.7% to € 19,874
million (2012: € 19,550 million). Profit before tax
amounted to € 1,639 million (2012: € 1,561 million), 5.0%
ahead of the previous year.

The number of new contracts within the credit
financing and leasing lines of business grew worldwide by 9.7% to
1,471,385 contracts (2012: 1,341,296 contracts). The portfolio of
lease and financing contracts in place with dealers
and retail customers at 31 December 2013 climbed by 7.4% to a total of
4,130,002 contracts (2012: 3,846,364 contracts).

Workforce size increased – record number of apprentices

In 2013, the BMW Group trained more young people than ever before,
employing a total of 4,445 apprentices worldwide.
Reithofer commented: “We consider training to be an investment in the
future of the company and in society”.

The size of the workforce increased by 4.2% in 2013,
reflecting both dynamic growth in business volumes and the rapid pace
of innovation. At the end of the reporting period, the BMW Group had a
worldwide workforce of 110,351 employees (31 December 2012: 105,876
employees). The increase is due to the growing need for engineers and
skilled workers in order to keep pace with continued strong demand on
the one hand and to push ahead with innovations and develop new
technologies on the other.

BMW Group in fourth quarter 2013

BMW Grouprevenues in the last quarter of 2013 totalled
€ 20,210 million and were thus marginally down on the previous year’s
figure (2012: € 20,536 million; -1.6%). EBIT for the
three-month period increased by 4.2% to € 1,951 million (2012: € 1,872
million), while profit before tax rose by 7.3% to
€ 1,889 million (2012: € 1,760 million).
Profit after tax improved by 9.5% to € 1,306 million (2012:
€ 1,193 million). The total number of BMW, MINI and Rolls-Royce brand
vehicles delivered to customers in the period from
October to December grew by 3.5% to 527,620 units (2012: 509,684 units).

Automotive segmentrevenues in the fourth quarter were almost unchanged
at € 19,325 million (2012: € 19,496 million; -0.9%).
EBIT amounted to € 1,770 million (2012: € 2,054
million; -13.8%) and profit before tax to € 1,766
million (2012: € 1,899 million; -7.0%). The EBIT
margin came in at 9.2%.

Financial Services segmentrevenues increased by 0.5% in the final quarter of
2013 to € 4,992 million (2012: € 4,968 million). EBIT
jumped by 25.5% to € 335 million (2012: € 267 million) and
profit before tax by 19.9% to € 325 million (2012: € 271 million).

BMW Group forecasts further sales volume growth in 2014

The BMW Group is striving to increase worldwide sales volume further
in 2014. “We forecast further sales volume growth in the current year
which will again bring us a new all-time high. In doing so, we should
exceed the threshold of two million vehicles”, stated Reithofer.

Supervisory Board

The Supervisory Board will propose to the Annual General Meeting that
the Supervisory Board members Franz Haniel, Susanne Klatten, Dr. h.c.
Robert W. Lane and Stefan Quandt be reelected for a mandate period of
five years each and Wolfgang Mayrhuber for a mandate period of three years.

* * *

Further information on the Group Financial Statements 2013 and the
outlook for the current year will be available at the BMW Group's
Annual Accounts Press Conference to be held on 19 March 2014 in Munich.

The BMW Group – an overview

2013

2012*

Change in %

Deliveries to customers

1,963,798

1,845,186

6.4

Automotive

Thereof:

BMW

units

1,655,138

1,540,085

7.5

MINI

units

305,030

301,526

1.2

Rolls-Royce

units

3,630

3,575

1.5

Motorcycles

units

115,215

106,358

8.3

Workforce1

110,351

105,876

4.2

Revenues

€ million

76,058

76,848

-1.0

Thereof:

Automotive

€ million

70,629

70,208

0.6

Motorcycles

€ million

1,504

1,490

0.9

Financial Services

€ million

19,874

19,550

1.7

Other entities

€ million

6

5

20.0

Eliminations

€ million

-15,955

-14,405

-10.8

Profit before financial result

€ million

7,986

8,275

-3.5

Thereof:

Automotive

€ million

6,657

7,599

-12.4

Motorcycles

€ million

79

9

-

Financial Services

€ million

1,643

1,558

5.5

Other entities

€ million

44

58

-24.1

Eliminations

€ million

-437

-949

54.0

Profit before tax

€ million

7,913

7,803

1.4

Thereof:

Automotive

€ million

6,561

7,170

-8.5

Motorcycles

€ million

76

6

-

Financial Services

€ million

1,639

1,561

5.0

Other entities

€ million

164

3

-

Eliminations

€ million

-527

-937

43.8

Income taxes

€ million

-2,573

-2,692

4.4

Net profit

€ million

5,340

5,111

4.5

Earnings per share2

€

8.10/8.12

7.75/7.77

4.5/4.5

Dividend per share of common/preferred
stock

€

2.60/2.62

2.50/2.52

-

* Prior year figures partially adjusted in accordance with the
revised IAS 19

1 Figures exclude dormant employment contracts, employees in the work
and non-work phases of pre-retirement part-time working arrangements
and low wage earners

The BMW Group is the leading premium manufacturer of automobiles and
motorcycles in the world with its BMW, MINI and Rolls-Royce brands. As
a global company, the BMW Group operates 28 production and assembly
facilities in 13 countries and has a global sales network in more than
140 countries.

In 2013, the BMW Group sold approximately 1.963 million cars and
115,215 motorcycles worldwide. The profit before tax for the financial
year 2013 was € 7.91 billion on revenues amounting to approximately €
76.06 billion. As of 31 December 2013, the BMW Group had a workforce
of 110,351 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

CO2 emission information.

Fuel consumption figures based on the EU test cycle, may vary depending on the tyre format specified. Further information on official fuel consumption figures, specific CO2 emission values and the electric power consumption of new passenger cars is included in the “Guideline for fuel consumption, CO2 emissions and electric power consumption of new passenger cars", which can be obtained from dealerships and here as PDF.

Related Video Content.

Fuel consumption figures based on the EU test cycle, may vary depending on the tyre format specified. Further information on official fuel consumption figures, specific CO2 emission values and the electric power consumption of new passenger cars is included in the “Guideline for fuel consumption, CO2 emissions and electric power consumption of new passenger cars", which can be obtained from dealerships and here as PDF.